US IPO Week Ahead: 13 IPOs close out 3rd quarter with biotechs, China and SurveyMonkey

We're looking at as many as 13 IPOs in the upcoming week, raising up to $1.1 billion. Even if 2 are postponed, it will still be the busiest September by IPO count since 2000. The 13 offerings are relatively small: none plan to raise more than $200 million, and eight have insider buying. As we noted in our Fall Preview, US activity is being boosted by biotechs and Chinese deals, and this week will see 5 and 3, respectively.

SurveyMonkey (SVMK) should grab the most headlines. Backed by Tiger Global, the freemium survey provider has respectable growth (17% in the MRQ) and profitability (25% trailing EBITDA margin), and now it is spending more on marketing to win enterprise accounts.

Three Chinese tech IPOs are listing in the US, each boasting about 200% YoY revenue growth. However, initial trading could be volatile based on recent IPO activity. Smart appliance maker Viomi Technology (VIOT) and TouchPal keyboard app provider CooTek profitably grew sales at over 250% and over 500%, respectively, in the first half. English education app LAIX (LAIX) saw its sales rocket up 480% in the first half, though heavy S&M spend has kept it unprofitable.

Brazil-based Arco Platform (ARCE), which offers technology-enabled curriculum solutions to private schools, also has solid sales growth (43%) and profitability.

Based on the success of recent biotech IPOs Principia and Y-mAbs, this week's five biotechs should get some interest. Each have notable backers. Three are oncology-focused: Sutro Biopharma (backed by Merck, Alta, Celgene, Lilly), Gritstone Oncology (Versant, Column Group,) and Arvinas (Canaan Partners, 5AM Ventures, OrbiMed). AstraZeneca-backed Entasis Therapeutics (ETTX) is targeting drug-resistant bacteria, and Roivant Sciences Urovant Sciences (UROV) has an oral drug candidate for overactive bladder.

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Arco Platform (ARCE), which provides turnkey curriculum solutions to private schools in Brazil, plans to raise $183 million by offering 11.1 million shares at a price range of $15.50 to $17.50. At the midpoint of the proposed range, it would command a market value of $802 million. Arco Platform, which was founded in 2004, booked $303 million in sales over the last 12 months. The Sao Paulo, Brazil-based company plans to list on the Nasdaq under the symbol ARCE. Goldman Sachs, Morgan Stanley, Itau BBA and BofA Merrill Lynch are the joint bookrunners on the deal.

Arvinas Holding (ARVN), a preclinical biotech developing protein degradation therapies for advanced cancers, plans to raise $100 million by offering 6.7 million shares at a price range of $14.00 to $16.00. Insiders intend to buy up to $40 million of the IPO (40% of the deal). At the midpoint of the proposed range, it would command a market value of $468 million. The New Haven, CT-based company plans to list on the Nasdaq under the symbol ARVN. Goldman Sachs, Citi and Piper Jaffray are the joint bookrunners on the deal.

Capital Bancorp (CBNK), a community bank serving the Baltimore and Washington, DC MSAs, plans to raise $30 million by offering 2.2 million shares at a price range of $12.50 to $14.50. At the midpoint of the proposed range, Capital Bancorp would command a market value of $185 million. Capital Bancorp, which was founded in 1999, booked $70 million in revenue over the last 12 months. The Rockville, MA-based company plans to list on the Nasdaq under the symbol CBNK. Keefe Bruyette Woods and Stephens Inc. are the joint bookrunners on the deal.

CooTek (CTK), a Chinese provider of mobile keyboard software, plans to raise $57 million by offering 4.4 million ADSs at a price range of $12.00 to $14.00. Insiders have indicated on up to $10 million of the IPO (18% of the deal). At the midpoint of the proposed range, CooTek would command a market value of $864 million. CooTek, which was founded in 2008, booked $78 million in sales over the last 12 months. The Shanghai, China-based company plans to list on the NYSE under the symbol CTK. Credit Suisse, BofA Merrill Lynch and Citi are the joint bookrunners on the deal. 

Entasis Therapeutics Holdings (ETTX), a Phase 2 biotech developing therapies for multi-drug resistant bacteria, plans to raise $75 million by offering 4.4 million shares at a price range of $16.00 to $18.00. Insiders intend to purchase up to $50 million on the IPO (67% of the deal). At the midpoint of the proposed range, it would command a market value of $225 million. The Waltham, MA-based company plans to list on the Nasdaq under the symbol ETTX. Credit Suisse and BMO Capital Markets are the joint bookrunners on the deal. 

Gritstone Oncology (GRTS), a preclinical biotech developing a therapy that enhances checkpoint immuno-oncology drugs, plans to raise $85 million by offering 6.1 million shares at a price range of $13.00 to $15.00. Insiders intend to purchase up to $35 million of the IPO (41% of the deal). At the midpoint of the proposed range, Gritstone would command a market value of $419 million. The Emeryville, CA-based company plans to list on the Nasdaq under the symbol GRTS. Goldman Sachs, Cowen and Barclays are the joint bookrunners on the deal.

LAIX (LAIX), which operates Liulishuo, an AI-powered English language learning platform in China, plans to raise $72 million by offering 5.75 million ADSs at a price range of $11.50 to $13.50. Two insiders intend to purchase up to $20 million of the IPO, and other investors have indicated on $42 million (combined 86% of the deal). At the midpoint of the proposed range, LAIX would command a market value of $661 million. LAIX, which was founded in 2013, booked $358 million in sales over the last 12 months. The Shanghai, China-based company plans to list on the NYSE under the symbol LAIX. Morgan Stanley and Goldman Sachs (Asia) are the joint bookrunners on the deal.

Ra Medical Systems (RMED), which is commercializing excimer lasers used to treat dermatological and vascular diseases, plans to raise $50 million by offering 3.3 million shares at a price range of $14.00 to $16.00. At the midpoint of the proposed range, Ra Medical Systems would command a market value of $193 million. Ra Medical Systems, which was founded in 2002, booked $5 million in sales over the last 12 months. The Carlsbad, CA-based company plans to list on the NYSE under the symbol RMED. Piper Jaffray and Cantor Fitzgerald are the joint bookrunners on the deal.

SurveyMonkey (SVMK), which operates a freemium online survey service, plans to raise $135 million by offering 13.5 million shares at a price range of $9.00 to $11.00. Salesforce Ventures has agreed to invest $40 million concurrent private placement. At the midpoint of the proposed range, SurveyMonkey would command a market value of $1.3 billion. SurveyMonkey, which was founded in 1999, booked $234 million in sales over the last 12 months. The San Mateo, CA-based company plans to list on the Nasdaq under the symbol SVMK. J.P. Morgan, Allen & Company, BofA Merrill Lynch and Credit Suisse are the joint bookrunners on the deal.

Sutro Biopharma (STRO), a Phase 1 biotech developing next-generation immuno-oncology therapies, plans to raise $75 million by offering 5.0 million shares at a price range of $14.00 to $16.00. Insiders intend to purchase $30 million of the IPO (25% of deal), while Merck will invest $10 million in a concurrent private placement. At the midpoint of the proposed range, Sutro Biopharma would command a market value of $337 million. Sutro Biopharma, which was founded in 2003, booked $33 million in revenue over the last 12 months. The South San Francisco, CA-based company plans to list on the Nasdaq under the symbol STRO. Cowen and Piper Jaffray are the joint bookrunners on the deal.

Urovant Sciences (UROV), a Phase 3 biotech developing an acquired oral therapy for overactive bladder, plans to raise $150 million by offering 10.0 million shares at a price range of $14.00 to $16.00. Parent Roivant Sciences intends to purchase $37.5 million of the IPO (25% of the deal). At the midpoint of the proposed range, Urovant would command a market value of $475 million. The London, United Kingdom-based company plans to list on the Nasdaq under the symbol UROV. J.P. Morgan, Jefferies and Cowen are the joint bookrunners on the deal.

Viomi Technology (VIOT), a Xiaomi-backed seller of internet-connected home appliances, plans to raise $114 million by offering 11.4 million ADSs at a price range of $9.00 to $11.00. At the midpoint of the proposed range, Viomi Technology would command a market value of $732 million. Viomi Technology, which was founded in 2014, booked $1.6 billion in sales over the last 12 months. The Guangdong, China-based company plans to list on the Nasdaq under the symbol VIOT. Morgan Stanley and CICC are the joint bookrunners on the deal.

YayYo (YAYO), which operates a fleet management and auto rental platform for ridesharing drivers,  plans to raise $5 million by offering 0.625 million shares at a price range of $7 to $9. At the midpoint of the range, YayYo would command a fully diluted market value of $288 million (implies a 2% float). YayYo was founded in 2016 and booked $1 million in revenue for the last 12 months. It plans to list on the Nasdaq under the symbol YAYO. The Benchmark Company was also named the sole bookrunner on the deal. 


Renaissance Capital will have Pre-IPO Research available on each of these upcoming IPOs prior to its pricing.